Balance sheet accounts are understated and income statement accounts are understated .
Balance sheet accounts are overstated and income statement accounts are overstated .
Balance sheet accounts are understated and income statement accounts are overstated .
Balance sheet accounts are overstated and income statement accounts are understated .
Multiple Choice Question 67 Crue Company had the following transactions during 2013 :
• Sales of $ 4,500 on account
• Collected $ 2,000 for services to be performed in 2014
• Paid $ 1,625 cash in salaries
• Purchased airline tickets for $ 250 in December for a trip to take place in 2014
What is Crue ’ s 2013 net income using cash basis accounting ? $ 375 . $ 4,875 . $ 4,625 . $ 125 . Multiple Choice Question 64 Which statement is correct ?